Winners And Losers Of Q2: Carlisle (NYSE:CSL) Vs The Rest Of The Building Materials Stocks
Looking back on building materials stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Carlisle (NYSE:CSL) and its peers.
Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of building materials companies.
The 8 building materials stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 2.9% above.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Luckily, building materials stocks have performed well with share prices up 10.5% on average since the latest earnings results.
Carlisle (NYSE:CSL)
Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE:CSL)is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.
Carlisle reported revenues of $1.45 billion, up 11% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.
Interestingly, the stock is up 1.9% since reporting and currently trades at $420.30.
Is now the time to buy Carlisle? Access our full analysis of the earnings results here, it’s free.
Best Q2: UFP (NASDAQ:UFPI)
Beginning as a lumber supplier in the 1950s, UFP (NASDAQ:UFPI) makes a wide range of building materials for the construction, retail, and industrial sectors
UFP reported revenues of $1.90 billion, down 6.9% year on year, outperforming analysts’ expectations by 1.6%. The business had a very strong quarter with an impressive beat of analysts’ volume estimates and a decent beat of analysts’ operating margin estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $126.73.
Is now the time to buy UFP? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Tecnoglass (NYSE:TGLS)
The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products.
Tecnoglass reported revenues of $219.7 million, down 2.5% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted full-year revenue guidance beating analysts’ expectations but a miss of analysts’ operating margin estimates.
Interestingly, the stock is up 42.1% since the results and currently trades at $67.57.
Read our full analysis of Tecnoglass’s results here.
Valmont (NYSE:VMI)
Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE:VMI) provides engineered products and infrastructure services for the agricultural industry.
Valmont reported revenues of $1.04 billion, flat year on year. This result met analysts’ expectations. It was a strong quarter as it also produced an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.
The stock is up 3.3% since reporting and currently trades at $280.24.
Read our full, actionable report on Valmont here, it’s free.
Armstrong World (NYSE:AWI)
Started as a two-man shop dating back to the 1860s, Armstrong (NYSE:AWI) provides ceiling and wall products to commercial and residential spaces.
Armstrong World reported revenues of $365.1 million, up 12.2% year on year. This result beat analysts’ expectations by 1.3%. More broadly, it was a mixed quarter as it recorded full-year revenue guidance beating analysts’ expectations. On the other hand, it missed analysts’ organic revenue estimates.
Armstrong World scored the fastest revenue growth among its peers. The stock is down 1.7% since reporting and currently trades at $128.53.
Read our full, actionable report on Armstrong World here, it’s free.
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